The impact of tariffs under the US administration for the Middle East

Since the new government took office on 20 January 2025, there have been several Executives Orders issued aiming to correct the trade deficit with the United States of America (hereinafter “the US”) with trading partner countries around the globe. Most such measures have been in the form of tariffs, which are essentially ad-valorem rates (e.g. customs duty rates) applicable on goods imported for domestic consumption in the US local market.

The tariff measures implemented by the Trump administration rely on certain Trade Acts enacted several decades ago which were dusted off to be used for specific situations, countries, and goods.

The main tariff measures recently implemented by the Trump Administration that may affect the Middle East Countries are as the following:

• Section 232 tariffs: These are based on the Section 232 of the Trade Expansion Act of 1962 and enables the President of the US to impose tariffs on imports if they threaten the “national security” of the US.
• The International Emergency Economic Powers Act (IEEPA): This was enacted in 1977 and confers on the President of the US broad authority to regulate international commerce during a deemed “national emergency” due to any unusual or extraordinary threat to the US.

Companies operating in the Middle East which are engaged in crossborder transactions with Companies located the US may be affected by Section 232 tariffs and IEEPA tariffs recently implemented by the Trump Administration.

The situation is changing regularly and therefore it is important for companies to stay up-to date and reevaluate the impact in case of any developments.

Edson Trevino
Associate Director, Customs and International Trade
KPMG Lower Gulf